CELESTICA INC (CLS)
CA15101Q2071 - Common Stock
Overall CLS gets a fundamental rating of 6 out of 10. We evaluated CLS against 127 industry peers in the Electronic Equipment, Instruments & Components industry. While CLS has a great profitability rating, there are some minor concerns on its financial health. CLS is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes CLS very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year CLS was profitable.
In the past year CLS had a positive cash flow from operations.
CLS had positive earnings in each of the past 5 years.
Each year in the past 5 years CLS had a positive operating cash flow.
1.2 Ratios
CLS's Return On Assets of 6.36% is fine compared to the rest of the industry. CLS outperforms 78.40% of its industry peers.
With an excellent Return On Equity value of 20.73%, CLS belongs to the best of the industry, outperforming 90.40% of the companies in the same industry.
CLS has a Return On Invested Capital of 13.55%. This is amongst the best in the industry. CLS outperforms 90.40% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CLS is in line with the industry average of 8.74%.
The last Return On Invested Capital (13.55%) for CLS is above the 3 year average (8.21%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.36% | ||
| ROE | 20.73% | ||
| ROIC | 13.55% |
ROA(3y)2.99%
ROA(5y)2.52%
ROE(3y)9.87%
ROE(5y)7.82%
ROIC(3y)8.21%
ROIC(5y)6.5%
1.3 Margins
CLS has a better Profit Margin (4.08%) than 68.00% of its industry peers.
In the last couple of years the Profit Margin of CLS has grown nicely.
CLS has a better Operating Margin (5.61%) than 68.00% of its industry peers.
In the last couple of years the Operating Margin of CLS has grown nicely.
With a Gross Margin value of 10.47%, CLS is not doing good in the industry: 79.20% of the companies in the same industry are doing better.
CLS's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.61% | ||
| PM (TTM) | 4.08% | ||
| GM | 10.47% |
OM growth 3Y33.83%
OM growth 5Y14.59%
PM growth 3Y42.53%
PM growth 5Y15.53%
GM growth 3Y11.64%
GM growth 5Y8.47%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CLS is creating some value.
CLS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CLS has less shares outstanding
Compared to 1 year ago, CLS has an improved debt to assets ratio.
2.2 Solvency
CLS has an Altman-Z score of 3.63. This indicates that CLS is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.63, CLS perfoms like the industry average, outperforming 59.20% of the companies in the same industry.
CLS has a debt to FCF ratio of 2.47. This is a good value and a sign of high solvency as CLS would need 2.47 years to pay back of all of its debts.
The Debt to FCF ratio of CLS (2.47) is better than 72.80% of its industry peers.
CLS has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
CLS's Debt to Equity ratio of 0.49 is on the low side compared to the rest of the industry. CLS is outperformed by 73.60% of its industry peers.
Although CLS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.47 | ||
| Altman-Z | 3.63 |
ROIC/WACC1.47
WACC9.21%
2.3 Liquidity
A Current Ratio of 1.47 indicates that CLS should not have too much problems paying its short term obligations.
With a Current ratio value of 1.47, CLS is not doing good in the industry: 77.60% of the companies in the same industry are doing better.
CLS has a Quick Ratio of 1.47. This is a bad value and indicates that CLS is not financially healthy enough and could expect problems in meeting its short term obligations.
CLS has a worse Quick ratio (0.87) than 85.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
CLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 60.09%, which is quite impressive.
CLS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.61% yearly.
Looking at the last year, CLS shows a quite strong growth in Revenue. The Revenue has grown by 17.52% in the last year.
CLS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.72% yearly.
EPS 1Y (TTM)60.09%
EPS 3Y34.89%
EPS 5Y17.61%
EPS Q2Q%60%
Revenue 1Y (TTM)17.52%
Revenue growth 3Y11.47%
Revenue growth 5Y3.72%
Sales Q2Q%22.33%
3.2 Future
The Earnings Per Share is expected to grow by 27.81% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 14.98% on average over the next years. This is quite good.
EPS Next Y60.56%
EPS Next 2Y35.81%
EPS Next 3Y27.49%
EPS Next 5Y27.81%
Revenue Next Year21.69%
Revenue Next 2Y15.16%
Revenue Next 3Y13.25%
Revenue Next 5Y14.98%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 26.74, the valuation of CLS can be described as expensive.
Based on the Price/Earnings ratio, CLS is valued a bit cheaper than the industry average as 66.40% of the companies are valued more expensively.
CLS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.73.
CLS is valuated rather expensively with a Price/Forward Earnings ratio of 21.30.
Based on the Price/Forward Earnings ratio, CLS is valued a bit cheaper than 69.60% of the companies in the same industry.
CLS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.74 | ||
| Fwd PE | 21.3 |
4.2 Price Multiples
65.60% of the companies in the same industry are more expensive than CLS, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CLS indicates a somewhat cheap valuation: CLS is cheaper than 67.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.11 | ||
| EV/EBITDA | 16.7 |
4.3 Compensation for Growth
CLS's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of CLS may justify a higher PE ratio.
CLS's earnings are expected to grow with 27.49% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.44
PEG (5Y)1.52
EPS Next 2Y35.81%
EPS Next 3Y27.49%
5. Dividend
5.1 Amount
No dividends for CLS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CELESTICA INC
NYSE:CLS (12/20/2024, 8:04:00 PM)
After market: 96.32 +0.87 (+0.91%)95.45
+2.4 (+2.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners83.02%
Inst Owner Change-4.4%
Ins Owners1.24%
Ins Owner Change0%
Market Cap11.11B
Analysts82.5
Price Target53.09 (-44.38%)
Short Float %2.59%
Short Ratio1.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.65%
Min EPS beat(2)10.52%
Max EPS beat(2)10.78%
EPS beat(4)4
Avg EPS beat(4)12.62%
Min EPS beat(4)10.52%
Max EPS beat(4)17.99%
EPS beat(8)8
Avg EPS beat(8)9.63%
EPS beat(12)12
Avg EPS beat(12)9.97%
EPS beat(16)16
Avg EPS beat(16)9.91%
Revenue beat(2)2
Avg Revenue beat(2)3.88%
Min Revenue beat(2)2.4%
Max Revenue beat(2)5.37%
Revenue beat(4)4
Avg Revenue beat(4)3.44%
Min Revenue beat(4)1.78%
Max Revenue beat(4)5.37%
Revenue beat(8)8
Avg Revenue beat(8)2.95%
Revenue beat(12)11
Avg Revenue beat(12)3.32%
Revenue beat(16)13
Avg Revenue beat(16)2.36%
PT rev (1m)10.54%
PT rev (3m)10.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)24.95%
EPS NY rev (1m)0%
EPS NY rev (3m)6.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.74 | ||
| Fwd PE | 21.3 | ||
| P/S | 1.2 | ||
| P/FCF | 29.11 | ||
| P/OCF | 20.65 | ||
| P/B | 6.1 | ||
| P/tB | 9.59 | ||
| EV/EBITDA | 16.7 |
EPS(TTM)3.57
EY3.74%
EPS(NY)4.48
Fwd EY4.7%
FCF(TTM)3.28
FCFY3.44%
OCF(TTM)4.62
OCFY4.84%
SpS79.42
BVpS15.64
TBVpS9.96
PEG (NY)0.44
PEG (5Y)1.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.36% | ||
| ROE | 20.73% | ||
| ROCE | 17.92% | ||
| ROIC | 13.55% | ||
| ROICexc | 15.72% | ||
| ROICexgc | 21.4% | ||
| OM | 5.61% | ||
| PM (TTM) | 4.08% | ||
| GM | 10.47% | ||
| FCFM | 4.13% |
ROA(3y)2.99%
ROA(5y)2.52%
ROE(3y)9.87%
ROE(5y)7.82%
ROIC(3y)8.21%
ROIC(5y)6.5%
ROICexc(3y)9.62%
ROICexc(5y)7.81%
ROICexgc(3y)13.89%
ROICexgc(5y)11.15%
ROCE(3y)10.86%
ROCE(5y)8.6%
ROICexcg growth 3Y33.48%
ROICexcg growth 5Y11.53%
ROICexc growth 3Y32.77%
ROICexc growth 5Y11.81%
OM growth 3Y33.83%
OM growth 5Y14.59%
PM growth 3Y42.53%
PM growth 5Y15.53%
GM growth 3Y11.64%
GM growth 5Y8.47%
F-Score8
Asset Turnover1.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.47 | ||
| Debt/EBITDA | 1.27 | ||
| Cap/Depr | 86.92% | ||
| Cap/Sales | 1.69% | ||
| Interest Coverage | 8.74 | ||
| Cash Conversion | 77.08% | ||
| Profit Quality | 101.17% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 3.63 |
F-Score8
WACC9.21%
ROIC/WACC1.47
Cap/Depr(3y)64.87%
Cap/Depr(5y)59.28%
Cap/Sales(3y)1.33%
Cap/Sales(5y)1.26%
Profit Quality(3y)140.8%
Profit Quality(5y)221.3%
High Growth Momentum
Growth
EPS 1Y (TTM)60.09%
EPS 3Y34.89%
EPS 5Y17.61%
EPS Q2Q%60%
EPS Next Y60.56%
EPS Next 2Y35.81%
EPS Next 3Y27.49%
EPS Next 5Y27.81%
Revenue 1Y (TTM)17.52%
Revenue growth 3Y11.47%
Revenue growth 5Y3.72%
Sales Q2Q%22.33%
Revenue Next Year21.69%
Revenue Next 2Y15.16%
Revenue Next 3Y13.25%
Revenue Next 5Y14.98%
EBIT growth 1Y42.82%
EBIT growth 3Y49.18%
EBIT growth 5Y18.85%
EBIT Next Year80.04%
EBIT Next 3Y30.47%
EBIT Next 5Y28.61%
FCF growth 1Y122.77%
FCF growth 3Y17.7%
FCF growth 5YN/A
OCF growth 1Y104.95%
OCF growth 3Y21.5%
OCF growth 5Y66.98%